Autori
Waldmann, Robert
Pelloni, Alessandra

Titolo
Indeterminacy and welfare increasing taxes in a growth model with elastic labour supply
Periodico
European University Institute of Badia Fiesolana (Fi). Department of Economics - Working papers
Anno: 1995 - Fascicolo: 32 - Pagina iniziale: 1 - Pagina finale: 17

The inclusion of a labour/leisure choice in endogenous growth models has interesting and somewhat counter-intuitive effects. For some parameter values the economy is a stable dynamical system so the market equilibrium is indeterminate. Odd effects of policy appear. The long-run growth rate is increased by lump sum taxes used to fund wasteful government spending. Again for parameter values, such policy can increase the representative consumer’s welfare.



Testo completo: http://hdl.handle.net/1814/557

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